SPLOST for new project


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Presentation given in 2002 to constituents to secure sales tax funding for a new hospital project in Alma, GA.

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SPLOST for new project

  1. 1. Securing the Future of Bacon County Hospital
  2. 2. Optimism is a Virtue
  3. 3. The Reason for Being… <ul><li>What effect does the hospital have on the community? </li></ul><ul><li>Why have a hospital? </li></ul><ul><li>Why is the hospital important? </li></ul>
  4. 4. Effect and importance of a hospital <ul><li>250 employees and $6 million per year payroll (10.2 million indirect) </li></ul><ul><li>Attraction for business and industry </li></ul><ul><li>Emergency services, base for trauma transport and saving lives </li></ul>
  5. 5. Effect and importance of a hospital <ul><li>Convenience for the public (traveling to get healthcare) </li></ul><ul><li>Provides a base for a strong medical staff </li></ul><ul><li>Babies are born here </li></ul>
  6. 6. Effect and importance of a hospital <ul><li>Diverse services (hospital, nursing home, rural health clinic, day care) </li></ul><ul><li>Cafeteria </li></ul><ul><li>Quality healthcare (JCAHO accredited) </li></ul>
  7. 7. What’s happened? <ul><li>Decrease in state and federal reimbursement </li></ul><ul><li>Payor mix has changed </li></ul><ul><li>More indigent care – can’t turn away </li></ul><ul><li>Aging equipment and buildings </li></ul>
  8. 8. What’s happened? <ul><li>Complexity of care has increased </li></ul><ul><li>Expectations of the public have increased </li></ul><ul><li>Needs have changed: </li></ul><ul><li>Most services are outpatient, much fewer inpatient </li></ul>
  9. 9. What’s happened? <ul><li>ADA requirements </li></ul><ul><li>Patients want privacy (semi vs. private) </li></ul><ul><li>Aging population </li></ul><ul><li>Sicker population </li></ul>
  10. 10. What’s happened? <ul><li>Labor cost has increased </li></ul><ul><li>Equipment and technology have increased </li></ul>
  11. 11. What WE think THEY need
  12. 12. Why do we need to change? (Build, modernize, update, improve) <ul><li>Retain physicians </li></ul><ul><li>Recruit physicians </li></ul><ul><li>Maintain current standard of care </li></ul><ul><li>Meet public expectations </li></ul>
  13. 13. Why do we need to change? <ul><li>Compete effectively </li></ul><ul><li>Become more efficient </li></ul><ul><li>Create a more attractive face </li></ul><ul><li>Source of community pride </li></ul>
  14. 14. What do we want to do? <ul><li>Total 5-year needs: $7.7 million </li></ul><ul><li>Expansion and modernization (ER, OR, OB, Lab, Xray) </li></ul><ul><li>Provide for state-of-the-art replacement equipment (CT, echo, ultrasound) </li></ul><ul><li>Improve appearance and comfort (renovate hospital and nursing home) </li></ul>
  15. 15. How do we do it? <ul><li>Four options: </li></ul><ul><li>1. Live off of operations </li></ul><ul><li>2. Ask for millage </li></ul><ul><li>3. General obligation bonds </li></ul><ul><li>4. SPLOST </li></ul>
  16. 16. Option 1 (live off operations) UNACCEPTABLE: <ul><li>Reimbursement declining, costs increasing </li></ul><ul><li>BCH is already one of the lowest cost providers </li></ul><ul><li>Market base can’t expand enough to generate dollars needed </li></ul>
  17. 17. Option 2 (millage) UNACCEPTABLE: <ul><li>Unequal taxation (37% of Bacon Countians pay) </li></ul><ul><li>Would need 7-8 mills for five years to get needs met </li></ul><ul><li>Meant for buoying up operations, not capital </li></ul>
  18. 18. Option 3 (general obligation bonds) UNACCEPTABLE: <ul><li>Bonds are County issued and guaranteed </li></ul><ul><li>Millage based </li></ul>
  19. 19. Option 4 (SPLOST) is needed: <ul><li>Continuation of the current SPLOST for county (NO NEW TAX) </li></ul><ul><li>Fairest tax (sales tax) </li></ul><ul><li>Only used for capital improvements, community projects </li></ul>
  20. 20. Option 4 (SPLOST) is needed: <ul><li>Only used for growth, improvement and modernization </li></ul><ul><li>Used locally for important projects such as schools, public administration </li></ul><ul><li>Other hospitals used SPLOST (Hazelhurst, Claxton) </li></ul>
  21. 21. There is a difference between SPLOST and need <ul><li>SPLOST = 5 million </li></ul><ul><li>Need = 7.7 million </li></ul><ul><li>Difference will be made up in operations and management </li></ul>
  22. 22. How will the difference be made up? <ul><li>-increased volume </li></ul><ul><li>-increase number and type of MDs </li></ul><ul><li>-promote and market hospital and MDs </li></ul><ul><li>-improve quality </li></ul><ul><li>-decrease expenses </li></ul>
  23. 23. What next? <ul><li>Call your county commissioner </li></ul><ul><li>Ask that they vote in July to put the sales tax on the September ballot </li></ul>